Volkswagen’s second profit warning in three months makes one thing clear: Europe’s largest car manufacturer is in decline.
The German manufacturer on Friday lowered expectations for sales, profit and cash flow due to declining demand for its cars. The company now expects to deliver fewer vehicles this year than in 2023 – its fourth annual sales decline in five years.
The warning underlines the scale of the crisis at Volkswagen, which has bungled its transition to electric vehicles and lost relevance in China, where its VW, Audi and Porsche brands are losing market share. In Europe, CEO Oliver Blume is confronted with new entrants, including China’s BYD, and with a conflict with the unions over possible job losses and unprecedented factory closures.
